ECONOMY

Further drop in returnable amount of cheap state loans

further-drop-in-returnable-amount-of-cheap-state-loans

Seven in every 10 corporations that received a cheap state loan under the Finance Ministry’s “Deposit To Be Returned” scheme will return less than 50% of the cash they collected, according to the latest measures the government announced on Monday.

It decided to slash the part of the loan that is to be returned by up to 75%, depending on the drop in each enterprise’s turnover due to the pandemic restrictions.

This adds up to a total benefit of some 660 million euros for companies and self-employed professionals.

Therefore companies with a gross turnover decline in excess of 70% and pretax losses will only have to pay back 25% of the state loans; those that suffered a drop in gross revenues of between 30% and 70%, compared to the previous year, will only have to pay back 33.3% of the loans; the rest of the loan recipients will need to return 50% of the cash received.